Mr. Stephen Barley reports

AFRICAN ENERGY ANNOUNCES PRIVATE PLACEMENT AND DEBT SETTLEMENT

African Energy Metals Inc. has agreed to complete a non-brokered private placement of up to 10 million units at a price of five cents per unit for aggregate proceeds of up to $500,000. Each unit will consist of one common share of the company and one share purchase warrant of the company. Each warrant will entitle the holder thereof to acquire one (1) additional share at a price of 10 cents per warrant share at any time prior to 5 p.m. Vancouver time on the date that is 12 months following the closing date.

The company plans to use the proceeds from the financing for general working capital purposes and to assist with the reactivation of the company. In connection with the financing, the company may pay finders' fees in cash or securities or a combination of both, as permitted by the policies of the NEX.

The securities issued pursuant to the financing will be subject to a hold period under applicable securities laws, which will expire four months plus one day from the date of closing of the financing. The securities issued pursuant to the financing will also be subject to additional hold periods with 25 per cent of the securities released four months plus one day after the closing of the financing and 25 per cent of the securities released every four months thereafter. Closing of the financing is subject to receipt of all necessary corporate and regulatory approvals, including approval of the NEX.

The company also announces that it has agreed to settle $60,000 of debt owing to its consultants, creditors and insiders by issuing one million shares at a deemed price of six cents per share. No warrants will be issued in connection with the debt settlement.

The debt settlement is subject to the approval of the NEX and all shares issued pursuant to the debt settlement will be subject to a four-month statutory hold period. The debt settlement will not create a new control person.

The company believes it is in the best interest of its shareholders to reduce the amount of accrued indebtedness to improve its financial position.

Participation by directors and officers in the debt settlement will constitute a "related party transaction" as defined under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions and such participation is expected to be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 on the basis that the fair market value of the related party debts being settled will not exceed 25 per cent of the company's market capitalization.

We seek Safe Harbor.